The pair closed in NY Friday at $1.3427, off recovery highs of $1.3445 seen after the release of US NFP and earnings data, both of which came in below forecast levels. Rate drifted off into the close, the later release of stronger than forecast UofM data provided some counter. Rate edged up to $1.3433 in early Asian dealing before rate reversed and stepped its way down to a low of $1.3417 before it settled back above $1.3420 ahead of Europe. Asian traders commented that the Bank of Portugal announcing a E4.9bn rescue package for BES had little noticeable effect, adding that Friday’s late announcement from Moody’s of an upgrade for Greece was also brushed aside. A light data calendar today, Spain unemployment at 0700GMT and EZ PPI at 0900GMT provides the morning interest, with NY ISM the only US data of note. Offers are said to reside at and above Friday’s high of $1.3445, the interest then scattered through to $1.3475. Bids seen into $1.3400, more around $1.3380 ahead of the Jul30 posted 2014 lows of $1.3366. Trader reports continue to favour fading rallies with the Nov7 2013 low at $1.3295 seen as the initial downside target.
